How Click and Collect is Changing Retail
What started as a means to meet customer demand has quickly turned into a money-making opportunity for retailers. Click and Collect is by no means a passing trend but rather an established delivery option, as results indicate order sizes are 2.5 times higher and 1 in 5 customers purchase more items when given the option to collect products in store.
Why is Click and Collect such a crowd pleaser?
Once a delivery differentiator and then a standard consumer expectation, Click and Collect services otherwise known as shopping online and picking up in store, have grown exponentially over the last few years. According to the Shopper Insight 360 Study, 20% of users buy online and pick up in store once a month, with 43% making an additional purchase when picking up products they ordered online. This growth highlights a huge opportunity for retailer profitability through utilising Click and Collect services as a delivery option.
4 Reasons why Click and Collect is so successful
1. Convenience: It’s all about simplicity and flexibility, as these are both keys to keeping consumers happy.
2. Speed: Customers don’t need to wait around all day for delivery when they can head in store and collect straight away.
3. Accessible: 67% of retailers are increasing their investment in technology to support this channel and increase availability.
4. Low Risk: Click and Collect services incur less risk of theft or missing delivery, offering a more secure and reliable alternative for ecommerce shoppers.
The Golden Rules of setting up Click and Collect
So you’re probably wondering how to use this service to your business’ advantage. First and foremost, it’s vital to set clear business goals for Click and Collect. This may be improving customer experience, gaining market share, lowering delivery costs or driving more footfall in store. This should be your first consideration when implementing Click and Collect.
Secondly and equally as important, is understanding your customer. Use demographics and psychographics to segment your audience as this will impact the timing, location and model of your service dependant on whether you want to cater to busy moms or commuters, for example. It is also necessary to define the customer experience to ensure you meet their expectations.
Next, you will need to determine what kind of model you want to set up. One option is Collect in store – a collection type where online orders are collected at checkout. If not professionally managed this may cause queues in-store.
Alternatively, you can tap into an established network of Pickup Points, e.g. the Pargo Pickup Point network. This will enable your customers to choose a convenient store from a map of Pickup Points. For ultimate convenience and depending on space, drive-thru is another potential model to use.
Finally, slick operations are crucial to offering a seamless and effective service. Real-time inventory visibility is extremely important according to 78% of retailers to track and plan stock accordingly. However, managing the actual fulfilment process efficiently is equally valuable. This can be provided by logistics services, like Pargo, who have the capability to support retailers’ Click and Collect through their flexible and convenient Pickup Points.
The rise of Click and Collect
There is no doubt that retailers’ eagerness to use Click and Collect is being driven by the shifting trend towards ecommerce in South Africa, rising customer expectations, willingness to drive traffic in-store and the possibility of incremental revenue. To provide effective Click and Collect services, retailers must follow the golden rules of setting clear business objectives, understanding their consumers and expertly managing the delivery process.
If you’re interested in partnering your business with Pargo to provide a stream-lined Click and Collect service or you would like to become a Pickup Point, please contact info@pargo.co.za.
